As business is slower at many companies during the summer with customers and employees on vacation, as a business owner, you might want to tackle that list of tasks you keep putting off. Here’s a look at some top items for many to-do lists:

Financial check-up. Schedule meetings with accountants to assess the company’s fiscal health and plan for the rest of the year. Discuss the company’s revenue outlook, plans for such big purchases as equipment or property, whether it’s in a position to hire and what its tax bill is going to look like.

Employee handbook. Human resources consultants and labour law attorneys recommend businesses create or update handbooks with detailed information and policies so staffers will understand what’s expected of them in their work, and what benefits and resources are available to them. Handbooks can be comprehensive and probably aren’t something that should be dashed off in a few weeks. But at the least, formulate written policies on vacation, sick leave, substance use, attendance, disciplinary procedures, conflicts of interest, harassment and discrimination. Find templates online. Ask a lawyer or HR professional to review the handbook.

Website makeover. Be sure your website shows up prominently in internet searches, and refresh the text or pictures. The sites should also display well on mobile devices — if your business doesn’t have a mobile site, it’s time to create one.

It’s a great time for Canadian startups to attract top talent from south of the border as the U.S. government is creating an unwelcoming environment, the chief executive of Shopify says.

“The Americans are doing a really great job of uninviting a lot of kinds of people who otherwise would go there,” said Tobias Lutke, who founded the e-commerce platform firm in 2004.

Since U.S. President Donald Trump assumed office in January, he’s signed a number of controversial executive orders, including a ban on travel to the U.S. from several predominantly Muslim countries, and other measures, such as withdrawing the U.S. from the Paris Climate Agreement.

Lutke said Shopify has been receiving many more applications from job seekers in the U.S. than before the 2016 presidential election.

“I think it’s as good right now as it ever has been,” he said of Shopify and other tech companies’ ability to bring talent up north.

Previously, Shopify had to court talent for years to develop a relationship and convince potential employees to move to Canada, he said, but now it’s receiving unsolicited applications from all over the U.S.

Lutke, who has criticized Canadian government policy in the past for seemingly hampering firms’ ability to attract international workers, said Ottawa is creating good awareness around Canada’s value of multiculturalism.

Shopify provides services to more than 377,500 merchants from about 175 countries as the end of 2016, according to its most recent annual report.

]]>a12687510canadianpressnpWhy small businesses love their credit unionshttp://business.financialpost.com/entrepreneur/small-business-digest/why-small-businesses-love-their-credit-unions
http://business.financialpost.com/entrepreneur/small-business-digest/why-small-businesses-love-their-credit-unions#respondTue, 25 Oct 2016 12:00:25 +0000http://business.financialpost.com/?p=706522When it comes to banking relationships, credit unions are top performers in the eyes of small business users. The newest Battle of the Banks report from Canadian Federation of Independent Business (CFIB) shows that credit unions consistently outrank all the big banks on all of the four key areas: financing, fees, account manager experience and service.

Credit unions have a decided advantage because they have a strong local community focus, says Rob Martin, senior policy advisor with CCUA (Canadian Credit Union Association) in Ottawa. “One of the things we hear consistently is that we don’t churn account managers. Unlike the big banks, where managers move through branches as part of their career path, a local presence means business owners get to see the same person again and again. That’s a big issue for small businesses.”

As local institutions, credit unions also have a long-term commitment to their members through good times and bad, he adds. “Because we are community based, we don’t look elsewhere for opportunities if there’s a downturn. We continue to lend and help members.”

Often credit unions are the only provider within reach. There are more than 305 credit unions across Canada operating in 380 communities, Martin reports. “In fact we are the only financial institution operating in some communities.”

He adds that while banks have embraced fee income to make up for the current low margins, credit unions have not gone down that path and tried to maintain a low-fee environment. “We also offer extra services to help facilitate cash management and record keeping for small businesses.”

Overall credit unions’ success in serving the small business market is not just one specific thing, Martin says. “We operate on fairly traditional ideas about what banking is, but that’s what works for our small business members.”

Is your website good – or just good enough?

When Marie Wiese conducts seminars, she often challenges people on whether their website is what it should be.

The founder of Marketing CoPilot and author of You Can’t Be everywhere: A common sense approach to digital marketing for small business, says consumer behaviour has changed dramatically in terms of searching for products and services. At the same time the social media options for businesses have gotten a lot more complicated.

Businesses seeking answers have to apply common sense and not try to be all things to all people on social media, she says. “There are a lot of tools at your disposal that are part of the customer journey. It’s about being practical and in some cases, going back to basics. One of your core tools in understanding the customer journey is your website. You need to get that right.”

As Wiese notes, websites are today’s new receptionists. “Imagine walking into an office and the receptionist is either curt, not nice or not interested in talking to you. That creates a bad impression. The same holds true for your website.”

Wiese offers up her top three things for move your website from “just good enough” to “good”:
First, take the time to figure out who your best customer is and what they are doing when they go to buy a product or service like yours. “Don’t try to be everywhere to everyone. Figure out what they look for first.”

Once you have that information, list the top five things your customers need to understand and make sure it’s clearly organized on your site. Consider what action they can take other than picking up the phone to call you. “If you offer commercial office cleaning services for example, you can offer a same-day free quote rather than making them email and wait for hours.” Also make sure that the site is clean, simple and easy to navigate, she adds. “Don’t try to put everything on your home page.”

Third, always be testing and looking. “You can’t put up a site for five years and not do anything to it. The world is too complex and buyers too educated for that to be OK. Keep going back and looking each month.”

If you get the foundations right, then you can start working on other channels, she says. “Get your backyard tidied up first, then start deciding if tools like Facebook will drive more traffic.”

Airbnb usage skyrocketing in Canada with SMBs

Small business owners are increasingly turning to Airbnb for their travel needs, according to a recent report by Concur, a cloud-based provider of travel and expense reporting services. While global usage by SMBs has increased 38% year-over-year from Q2 2015, Canadian SMB usage shows a 224% increase between Q2 2015 and Q2 2016.

Concur analyzed global data over the course of two years, which unearthed these numbers around SMB use of Airbnb. “This just shows that small businesses are looking for flexibility and control over travel costs,” says Brian Veloso, senior director, SMB for Concur Canada.

According to the Hotel Association of Canada, average hotel rates per night is $144, while the average expense amount for an Airbnb stay is $119.27.

He claims that employees are really moving the trend, as they prefer to look for accommodations that more closely mirror their personal lives, he adds. “Business owners for their part are recognizing the benefits of leveraging lower cost accommodations, especially given the weaker dollar. These types of accommodations help them manage costs, especially when travelling outside of Canada.”

MaRS Verge Corporate Innovation Conference coming soon

On November 15, the MaRS Verge Corporate Innovation Conference will be hosting 150 corporate innovators who are ready to challenge the way they think with a day of thought leadership, networking and training. New to this year’s conference will be dedicated sessions focusing on specific innovation challenges in the health, energy and financial services sectors and in the changing workforce.

Attendees will participate in open conversations with innovation experts and entrepreneurs who have earned their experience. Kirstine Stewart, founding head of
Twitter Canada will be the keynote speaker for the event.

]]>http://business.financialpost.com/entrepreneur/small-business-digest/why-small-businesses-love-their-credit-unions/feed0cashdenisedeveaufpGrants aren’t necessarily the way to stimulate innovation, small businesses sayhttp://business.financialpost.com/entrepreneur/small-business-digest/grants-arent-necessarily-the-way-to-stimulate-innovation-small-businesses-say
http://business.financialpost.com/entrepreneur/small-business-digest/grants-arent-necessarily-the-way-to-stimulate-innovation-small-businesses-say#respondMon, 24 Oct 2016 12:29:45 +0000http://business.financialpost.com/?p=705966Canada’s small businesses need to be part of the country’s innovation conversation, a recent report from the Canadian Federation of Independent Business (CFIB), Beyond the Big Idea: Redefining and rethinking the innovation agenda, shows.

The study found more than 80 per cent of small businesses report having been innovative in their business in the past five years. “There are lots of definitions of innovation and many ways to innovate,” said Corinne Pohlmann, CFIB’s senior vice-president of national affairs and partnerships, in a statement.

“We want to make sure that public policies will be based on an inclusive approach that takes into account all sorts of activities. We have to keep in mind that big changes in our society were often preceded by small ideas.”

Creating an environment that encourages innovation shouldn’t necessarily mean that government has to create costly new financing grants or programs, she noted. “Instead, small business owners consider that it could be more effective for governments to address barriers to innovation such as skilled labour shortages, red tape and lower taxes to drive more innovation in Canada.”

Key recommendations include applying an “innovation lens” to new regulations and legislation, including reinstating the small business corporate tax reduction plan and easing. This will help small businesses hire more people, pay higher wages and be more productive contributors to Canada’s economic growth, Pohlmann said.

CFIB encourages the introduction of an innovation deduction that would allow businesses to claim up to $100,000 a year for new equipment and technology — an initiative that was recently introduced in the United States.

Another challenge many small business owners face is that they are unaware of current government programs and tax credits to support innovation. More than half of the owners surveyed were “not very” or “not at all” aware of programs such as the Industrial Research Assistance Program (IRAP), and the Networks of Centres of Excellence.

Canada ranked as world’s fourth largest cyber security hub based on VC deals, but we can be more dominant in this: Deloitte

Canada ranks as the fourth largest innovation hub in the world for cyber security, behind Britain, the U.S. and Israel, a Deloitte report, Harnessing the Cybersecurity Opportunity for Growth, found. The ranking is based on venture capital deals in the cyber security sector.

A key takeaway of the report commissioned by Ontario Centres of Excellence (OCE) and the Toronto Financial Services Alliance (TFSA), is that Ontario in particular has the potential to assume a more dominant leadership role in cyber security, given its current strengths in financial services and technology, if it takes immediate steps to seize the opportunity.

“The report strongly reinforces our view that the strength of both our financial services industry and the province’s innovation ecosystem present a major opportunity for economic growth and global leadership in cyber security,” said Tom Corr, president and CEO at Ontario Centres of Excellence.

He points to three important regions that provide a strong base upon which to build. “We have Toronto which is the second largest financial institute centre in North America, (behind New York), and a strong centre for fintech; Ottawa, where there is significant government activity in cyber security; and the Waterloo region, with its great startup ecosystem and leading edge research work in quantum computing and cyber security.”

Corr estimates there are 90 companies in Ontario in the cyber security space, a majority of which are small to mid-sized business and startups.

“We have already established significant clusters of cyber security innovation; and we have really smart people and technology that can propel this sector forward. What’s needed now is the co-ordination and focused support that will take this to a new level of global competitiveness.”

A majority of private business owners are woefully unprepared for retirement

Private business owners will have to step up their game if they want to enjoy a comfortable retirement.

A recent report from BMO Wealth Management shows 72 per cent of private business owners surveyed have saved less than $100,000 for their retirement. About one-third have not considered which exit option they could use to fund shortfalls in their retirement savings. It also noted that withdrawing at a rate of $50,000 can cause a $500,000 pool of retirement savings to disappear in 12 years.

Private business owners’ exit options include: selling to buyers outside the family; transferring the business to a family member at no cost; closing or winding down; or selling to family members. However, one-third said they do not know what exit option to consider.

The full report — As a business owner, do you have a retirement contingency plan? — which includes retirement planning advice, is available here

If your website isn’t mobile friendly, you’re likely losing business

There’s no question that mobile is becoming the online access resource of choice, whether it’s seeking directions, researching a business or shopping, data from Google shows.

The internet giant notes that upward of 60 per cent of all searches start on a mobile device — even if a laptop/desktop is available. This represents a big change in consumer behaviour, said Scott Wilson, founder and CEO of RankHigher.ca, a Burlington, Ont.-based digital marketing, and SEO firm. It also means businesses should take a good look at whether their website is mobile friendly — or not.

It’s not just about aesthetics. Having a mobile friendly website is essential to search engine success. If your website is not mobile friendly, you will not be able to rank near the top of a Google search for any competitive keywords, Wilson said.

Here’s why that matters: A September 2016 Google report, How to get Canadian Consumers to Choose You: Meet Them in Their Micro-Moments, notes that one in two Canadians who conducted research on their smartphone purchased a brand they wouldn’t normally because of relevant information in the moment. Up to 88 per cent of Canadians have discovered new products or brands online.

And when Canadian smartphone users need to buy something, 40 per cent will take action right away on their smartphones.

So how can you be sure your website will do the best job of helping consumers find you? The first and most important step is to test the mobile-friendliness of your site, Wilson advises. Google has a Mobile-Friendly Test tool that will go through your site page by page to see which ones pass. Once you discover areas of low scores, work with someone to find out how to up your score.

“If you ignore your mobile-friendliness, you will be missing potential customers,” Wilson said. “All small businesses have to pay attention to this.”

]]>http://business.financialpost.com/entrepreneur/small-business-digest/grants-arent-necessarily-the-way-to-stimulate-innovation-small-businesses-say/feed0moneydenisedeveaufpHere’s what to look out for to avoid credit card fraud or charge-backshttp://business.financialpost.com/entrepreneur/small-business-digest/heres-what-to-look-out-for-to-avoid-credit-card-fraud-or-charge-backs
http://business.financialpost.com/entrepreneur/small-business-digest/heres-what-to-look-out-for-to-avoid-credit-card-fraud-or-charge-backs#respondFri, 21 Oct 2016 12:00:08 +0000http://business.financialpost.com/?p=705511There are plenty of stories around about small businesses getting scammed in some way or another on credit card purchases, but you protect yourself, James Brown, vice-president of merchant relationship management for MasterCard Canada, says.

“Whenever we do training sessions, what really piques merchants’ interest is fraud and charge-backs.”

The following are some simple steps, Brown suggests you can follow to avoid fraudulent transactions:

If in doubt, get authorization. “Chip and pin has helped, but not everyone uses it. You can always reach out to the acquirer if you think there may be a risk of fraud,” Brown said.

Watch for suspicious behaviour patterns. If someone is making a large purchase that they want to take home, even if delivery is free, that could point to something unusual. Watch out for people ordering an excessive number of gift cards, as that can point to potential fraud.

Be vigilant with online purchases. A regular online customer ordering something outside of their normal behaviour should raise a red flag.

Honour your commitments. Make sure deliveries arrive on the date promised and are tracked and signed for. “There are always people who will say it wasn’t honoured and will request a charge-back,” Brown said.

Be careful with large orders from new customers that are shipped out of the country. This is especially a signal if the person or business is operating in Canada.

“Some of these may be legitimate transactions. But the general rule is to protect yourself if you don’t think a transaction feels right,” Brown said.

Exporting seems to make retailers more optimistic and profitable: Survey

The most optimistic small to mid-sized businesses, or SMBs, are the ones that export, a new SMB Optimism survey by MARU/Vision Critical Research and Consulting for eBay Canada found.

On optimism, Canadian retail SMBs scored an average of 74 out of 100 on the index overall — but that broke down to 79 points for businesses that export and 72 for those that do not.

Furthermore, exporting companies reported an average of nearly 60 per cent more in sales than those who don’t. They are also more likely than non-exporters to believe there are new market opportunities for them (70 per cent vs. 36 per cent); and that technologies and innovations will positively impact their business (56 per cent vs. 41 per cent).

“Given the relatively small size of the Canadian market, it stands to reason that business optimism in our country would be linked to exporting,” said Andrea Stairs, managing director, eBay Canada in a statement. “A critical success factor to scaling a Canadian business is the ability to tap into international demand. E-commerce has helped democratize international trade, and global online marketplaces such as eBay are enabling SMBs to reach buyers beyond their borders and fulfill their potential.”

Why tech companies are doing a better job at finding and retaining talent

We’re hearing a lot these days about skills shortages, but Soley Soucie, director for Eastern Canada for Hays, said companies that have a leg up on everyone else are the ones that pay attention to corporate culture.

Tech companies excel in that regard. The 300-plus tech startup companies in the Ottawa region know exactly what employees want and how to keep them for the most part, Soucie said. “In the past nine months, I’ve noticed engagement going up at these companies. People can’t be attracted away from them.”

Soucie noted that tech companies are doing a far better job than more traditional industries competing for skilled talent. “It’s interesting to see different industries with skills shortages, but tech companies are simply more creative in their approach, from compensation to the day-to-day working environments,” she said.

But that doesn’t mean others can’t follow their lead. While businesses may not have the resources to invest in on-site gyms, games rooms or cafés, there are things employers can do to build a winning culture for their employees, she said.

Dress codes “Casual dress is a massive selling feature,” she said. “People like to be able to come however they please and be comfortable at work.”

Encouraging social activities Companies should plan a number activities to help employees engage in the culture, from weekly scrum meetings and celebrations, to charitable events and outings.

Succession planning This is a huge opportunity companies often miss, Soucie said. “By that I don’t mean at the executive level. You need to map out and share with employees the roles that will need to be filled, the skills required, and the path they can take to get there. Employees want to know they can progress in their careers. If you don’t spell it out, they may not be aware of potential opportunities.”

Ability to work remotely “Ask yourself do they have to be in the office all the time. People like having the option and the fact that employers have trust in them.”

The best part is, these don’t cost a lot and can go a long way in helping small businesses attract talent, Soucie said.

“This is all low hanging fruit. We see a lot of clients look at big things like salaries and company shares — those all cost money. Besides, there’s always someone who can offer higher pay. But if you’re missing something as basic as social activities you may lose out. Don’t get too focused on things you can’t control and focus on what you can.”

]]>http://business.financialpost.com/entrepreneur/small-business-digest/heres-what-to-look-out-for-to-avoid-credit-card-fraud-or-charge-backs/feed0CreditcardsdenisedeveaufpDespite recent disasters, nearly half of Alberta businesses don’t carry interruption insurance, survey sayshttp://business.financialpost.com/entrepreneur/small-business-digest/despite-recent-disasters-nearly-half-of-alberta-businesses-dont-carry-interruption-insurance-survey-says
http://business.financialpost.com/entrepreneur/small-business-digest/despite-recent-disasters-nearly-half-of-alberta-businesses-dont-carry-interruption-insurance-survey-says#respondThu, 20 Oct 2016 12:00:55 +0000http://business.financialpost.com/?p=705076Despite having faced multiple disruptive disasters in recent years, a large number of small to medium sized businesses in Alberta are ill prepared for such events, a Business Beat survey by ATB Financial shows.

The survey found 23 per cent of SMBs in the province have experienced significant disruption in their business. Yet 45 per cent of those surveyed said they did not carry disruption insurance.

There is also a noteworthy gap in continuity planning: 78 per cent believe a continuity plan is important, yet only 47 per cent have followed through. Of those that don’t have a plan, 62 per cent said it wasn’t a priority.

Similarly, 91 per cent of respondents acknowledged the importance of succession planning, but only 58 per cent have a plan in place.

“We’re seeing a common theme in these survey results,” Teresa Clouston, ATB’s executive vice-president, business and agriculture, said in a release. “Business owners clearly realize the importance of continuity and succession planning, even identify such planning as a priority, but many don’t seem to have the time or resources to do either.”

She advises businesses owners compile a plan to deal with disruption that will allow them to be proactive rather than reactive in a crisis. “We recommend building a recovery plan into your business plan and revisiting that plan yearly.”
Millennials see themselves as disruptors and game changers
While most business owners are looking for some financial gain, millennial entrepreneurs say it’s the passion behind the idea that drives them to take risks to get a business off the ground.

In a recent survey, Millennial Entrepreneur Study, commissioned by American Express Canada in partnership with Startup Canada, called Motivations, Mindsets & Experiences of #MillennialSBOs, 88 per cent of millennial small business owners claim passion is what got them into business.

Confidence is not an issue for these business owners: The study shows nearly half have yet to turn a profit; yet 85 per cent are willing to take financial risks to grow their business. And 93 per cent of respondents plan to grow their business in the next year; 90 per cent believe their offering is superior to that of their competition; and 76 per cent aim to disrupt their industries.

Canadian millennials are also putting in the extra work and getting creative to fund their dream projects. For example, 42 per cent of those surveyed hold a second job; and nearly half pay themselves a below-market wage (if at all). And 52 per cent used their personal savings to start their company.

“Millennials are a significant force in entrepreneurism, so we wanted to hone in and look closely at what motivates them,” Victoria Lennox, CEO and co-founder of Startup Canada, said.

She notes one attribute that differentiates millennials from the previous generation of business owners: “While other generations are more motivated to give back once they have been successful, millennials want to start to give back from the beginning. They are committed to building social purpose into their products and services, being active corporate citizens, and investing in the startup community.”

Businesses don’t succeed without passion, Lennox added. “And millennials certainly have that. That’s really exciting for the future because they are coming into their own as the business leaders of today. What motivates them will have an impact on our economy. They just have to learn how to convert that passion into a profitable company.”

Startup Canada and American Express will continue the conversation on millennial entrepreneurship on the Startup Canada Twitter program, #StartupChats, throughout the fall. On Nov. 2, noon to 1 pm ET, entrepreneurs and experts are invited to discuss Managing Small Business Cash Flow. On Nov. 21, noon to 1 pm ET, the topic will be combining Passion with Profit. Register for these events at startupcan.ca/events.

Roadmap for manufacturing in Canada sets goal of doubling output in the next 15 years
The manufacturing sector’s output and exports can be doubled by 2030 through strategic investments and government partnership, Canadian Manufacturers & Exporters, along with its strategic partners, said in a newly released Industrie 2030: Reinventing Canadian Manufacturing report.

CME consulted more than 1,250 leading industry executives and conducted detailed research to define specific recommendations to overcome challenges and create a roadmap for the future of manufacturing.

Many of the businesses that took part in the survey were small to mid-sized operations, Mathew Wilson, senior vice-president of CME in Ottawa, said. In speaking to businesses on what it would take to grow, there is general frustration with the lack of support from government, he noted.

“It’s not about cash or incentives. It’s more about broader mechanisms around them that get in the way of growth, such as regulations and tax regimes. Energy prices and approvals for permits for example are playing a huge role in undermining the ability of businesses to quickly adapt, innovate and grow.”

He also contends Canadian companies are not innovating enough. “If you’re not inventing and commercializing you’re probably not growing,” Wilson said.

“Our roadmap is to double output in the next 15 years in Canada. We can do that by focusing on the things that’s matter, such as raising awareness, bridging the skills gaps, increasing commercialization, supporting investment in manufacturing, and making Canada more competitive to encourage small and mid-sized manufacturers to stay in the country. We need to focus on solutions that can drive change long term.”

]]>http://business.financialpost.com/entrepreneur/small-business-digest/despite-recent-disasters-nearly-half-of-alberta-businesses-dont-carry-interruption-insurance-survey-says/feed0CANADA-FIRE-FORESTS-OIL-EVACUATIONdenisedeveaufpCustomized plans put group benefits in reach of small business ownershttp://business.financialpost.com/entrepreneur/small-business-digest/customized-plans-put-group-benefits-in-reach-of-small-business-owners
http://business.financialpost.com/entrepreneur/small-business-digest/customized-plans-put-group-benefits-in-reach-of-small-business-owners#respondWed, 19 Oct 2016 15:15:24 +0000http://business.financialpost.com/?p=704685One challenge small business owners tend to avoid is group benefits for employees. An overwhelming majority (up to 75 per cent) of small businesses with fewer than 100 employees don’t have group benefits, said John Carinci, VP group and business markets at RBC Insurance.

“That’s a substantial amount given that 99 per cent of businesses in the country fall into that category. The perception is that it’s either too expensive, reserved for larger companies, or difficult to purchase. But it’s important to have coverage, because it plays a key role in attracting and retaining top talent.”

What businesses don’t know is that plans can be customized for the smallest of operations. And getting on board is getting easier by the day.

Startup League Inc. is helping simplify the process with what it calls an end-to-end digital alternative to traditional health insurance. The company is led by the team who were behind Kobo’s success. RBC Insurance is the first underwriting partner for the service in Canada.

The platform includes digital health spending accounts, lifestyle spending accounts and workplace health services, among its coverage options. Business owners build the benefits plan that is right for their employees picking from an online menu.

Businesses choose what they want from the online menu. “It could be a health spending account, a lifestyle account, a peace of mind plan for catastrophic events,” Michael Serbinis, Startup League founder and CEO, said.

Employers then enroll employees via a dedicated portal. Employees receive an email to create their account and install the app that includes a digital wallet. They can also use the app to find the nearest health services, book appointments directly and pay.

“It’s like walking out of Uber. The payment happens and you’re done. This reduces the hours of getting reimbursed to seconds,” Serbinis said.

Businesses can change their plan at any time. For example, an employer may decide to budget $500 a year per employee for their coverage of choice. As they grow, they can increase the digital wallet, or transition to a full health and drug plan.

It’s a concept that goes far beyond signing up for insurance programs online, Serbinis said. “It changes the whole mindset of collecting premiums and avoiding claims to avoid costs. It takes the frustration out of the whole experience.”

Portag3 Ventures closes new fintech fund

Partag3 recently closed a fund that the partners say is committed to finding creative, ambitious entrepreneurs who will help reshape the Canadian fintech sector to benefit all consumers and to help technology entrepreneurs build global companies.

Adam Felesky, a co-founder and former CEO of Horizons ETFs, has been named president and will run day-to-day operations at the fund. Paul Desmarais III, a vice-president at Power Corporation of Canada and Power Financial Corp., will serve as executive chairman of Portag3.

Portag3 is exclusively backed by a corporate partnership between Power Financial Corp., IGM Financial Inc. and Great-West Lifeco Inc. Members of the group have already made a number of promising investments, including stakes in one or more of Wealthsimple, Borrowell, Clearbanc, Koho and League. For more information, go to: p3vc.com.

Food delivery services are a growing segment, especially in Canada

On-demand restaurant delivery services are taking the urban markets by storm — helping restaurateurs up their revenue streams by as much as 30 per cent a month, David Albert, managing director of Foodora Canada, said. Foodora entered the Canadian market in 2015 when it acquired Toronto startup Hurrier and rebranded this past January.

Canada is especially big on delivery services, Albert said. “It is one our top performing markets globally, showing a tenfold increase in orders since last year.”

There are two primary reasons restaurants have not offered meal delivery in the past, he said. “Hiring delivery people increases headcount and overhead costs. Also, owners weren’t confident that their meals would arrive as fresh and hot as they do in the dining room.”

Food delivery platforms can remove the time and resources barriers for restaurants, since the service takes care of preparing routes, quoting delivery times and managing delivery staff. They also help restaurants to extend their business and reach new customers through the delivery services’ web and mobile apps.

Calgary markets itself as a place to start a business now

Calgary Economic Development is launching a national integrated marketing campaign to inspire entrepreneurial businesses to be part of the province’s innovative and economic diversification. The “Be part of the energy” campaign is sharing remarkable stories of the region’s companies and entrepreneurs who are making a global impact, to encourage like-minded entrepreneurs and businesses to locate, expand or invest in Calgary.

“Even in a downturn, Calgary is a great place to live, work, invest and do business,” said Mary Moran, president and CEO of Calgary Economic Development in a statement. “The counter-cyclical opportunities that exist in Calgary with competitively priced office and industrial space and available specialized talent mean the time for businesses to consider Calgary is now.”

Evolocity and Startup Canada announce winners of Women Founder Fund

Evolocity, a fintech company, and Startup Canada announced the first four winners of the Startup Canada Women Founder Fund, which just launched in August. The fund provides micro-grants to female entrepreneurs and women-led companies in Canada to help them start and grow their businesses.

The winners are: YUMiTRITION/YUMiBox founded by Mengyin Hong, a monthly subscription service for seasoned whole-grain mixes; Welbi, an app for tracking smartwatch or Fitbit data to monitor daily activities, founded by Elizabeth Audette Bourdeau; Shecosystem Inc., a co-working space and community hub for women, run by Emily Rose Antflick; and Spreza, a developer of voice recognition software, owned by Heather Evans.

]]>http://business.financialpost.com/entrepreneur/small-business-digest/customized-plans-put-group-benefits-in-reach-of-small-business-owners/feed0doctorsdenisedeveaufpHelp is on the way for startups making a pitch for investment dollarshttp://business.financialpost.com/entrepreneur/small-business-digest/help-is-on-the-way-for-startups-making-a-pitch-for-investment-dollars
http://business.financialpost.com/entrepreneur/small-business-digest/help-is-on-the-way-for-startups-making-a-pitch-for-investment-dollars#respondTue, 18 Oct 2016 12:49:08 +0000http://business.financialpost.com/?p=704213Securing funding can be daunting: Consider that nearly half (44 per cent) of Canadian entrepreneurs have been rejected by an investor, a recent study from Intuit Canada found.

But the problem seems to be with the entrepreneurs. Many approach an investment pitch without a clear picture of where they stand. And that’s a problem for investors.

The research uncovered some surprising results. For example, one in 10 entrepreneurs seeking investment don’t plan to prepare anything for their pitch, while 61 per cent spent said they spent less than 12 hours preparing for a pitch — less time than planning a vacation.

Other surprises of note: 67 per cent of Canadian entrepreneurs are unsure exactly what investors are looking for; 35 per cent don’t plan to prepare a business plan; 68 per cent don’t plan to create a cash flow statement; and 38 per cent enter a pitch with no balance sheet.

“The fact is that a lot of people aren’t getting into business because they’re good at finance or business planning. It’s because they are bringing an idea to the table and not bringing in others to help,” said Jeff Cates, president and CEO of Intuit Canada. “Yet banks need to see things like a business plan or a cash flow report.”

Entrepreneurs aren’t necessarily able to do those things without outside help. “They can draw knowledge from peers, mentors, or any other trusted advisor. Or they can connect with an accounting professional who can coach them through the process. That kind of preparation can make a big difference.”

To help entrepreneurs improve their chances, Intuit has launched a new initiative in collaboration with Startup Canada, SociaLIGHT, Launch Academy, Notman House and the DMZ at Ryerson University. Startup Foundations was created to educate, train and enable up to 10,000 startups across Canada through free live events, training sessions and online workshops. Participants will learn to improve their basic financial management skills, make better decisions and ultimately fuel business success. Topics will focus on a wide range of business skills, from networking and understanding cash flow to basic bookkeeping and how to grow and scale. Resources will made be available starting in November.

Family businesses can beat high generational failure rates by talking

Family-owned businesses tend to see massive drop-offs with each generation. The numbers bear this out, with 70 to 80 per cent of firms not making it to the second generation; and only 13 per cent going to the third, said Michelle Osry, Canadian leader family enterprise consulting for Deloitte in Vancouver.

However, family-owned businesses can escape the apparent inevitable if they take the trouble to engage in the right conversations at the right time, Osry contends.

It starts by getting a multi-layered perspective on the issues. “Family businesses are unique in that the system is dependent, independent and interdependent at the same time. Family members need to attend to fiscal, personal and relationship needs in parallel. There are loads of complexities that come into those conversations around things like family values, aspirations, sharing, decision making, accountability, dispute resolution and corporate structure.”

The key is finding ways to open up what can often be difficult conversations, Osry said. “Create agendas that set out expectations and provide structure when you’re entering messy areas. It sounds simple, but it takes a lot of time and effort. Families need to recognize the unique challenges and opportunities they face. But if they can take care of these things in an open conversation, chances are better they can beat the numbers.”

Small business will determine the economic success of the province: Ontario Chamber of Commerce report

Ontario’s small business community will play a pivotal role in the future economic success of the province. That’s the key finding in Obstacles and Opportunities for Small Business in Ontario, a recent report from Ontario Chamber of Commerce and MasterCard Canada. It highlights the contributions of small businesses to the provincial economy and identifies and offers solutions to the most pressing challenges small business owners face.

The research shows businesses with fewer than 100 employees make up 98 per cent of all Ontario businesses and two-thirds of private sector employment in the province. They contributed approximately 28 per cent to the provincial GDP and created 87.7 per cent per cent of the new jobs nationally from 2005 to 2012.

Among the challenges highlighted are: 33 per cent of small Ontario businesses say increasing energy prices will have a large impact on their organization, causing them to delay or cancel investment. There is also a serious mismatch between the nature of vacancies and qualifications of those seeking work, with 39 per cent of employers saying they can’t fill a job (up from 28 per cent in 2014).

Despite the fact Canadians create companies at a higher per capita rate than Americans, they are failing to scale up at comparable levels to other nations. The OCC report points to the three major barriers small businesses face — escalating costs of doing business; a lack of access to the workers employers need; and government funding alignment on infrastructure projects — and provides recommendations for each.

“Small businesses in Ontario are being held back by a diverse set of challenges that need to be addressed by all three levels of government.” Allan O’Dette, president and CEO of the OCC, said in a statement.

“We are encouraging the provincial government to implement our report’s recommendations so that we can ensure that our economy will have sustained economic growth for many years to come.”

]]>http://business.financialpost.com/entrepreneur/small-business-digest/help-is-on-the-way-for-startups-making-a-pitch-for-investment-dollars/feed0Businessman Working Calculator Balance Financial Planning Paperwork ConceptdenisedeveaufpBDC introduces first ever online business productivity benchmarking toolhttp://business.financialpost.com/entrepreneur/small-business-digest/bdc-introduces-first-ever-online-business-productivity-benchmarking-tool
http://business.financialpost.com/entrepreneur/small-business-digest/bdc-introduces-first-ever-online-business-productivity-benchmarking-tool#respondMon, 17 Oct 2016 15:07:32 +0000http://business.financialpost.com/?p=703570Ask a small business owner if he has done any productivity benchmarking and the odds are the answer is no.

In fact, less than half of Canadian small to mid-sized businesses formally measure their productivity. And of those that do, only 6 per cent adopt formal comprehensive metrics and compare themselves to their peers, new research from BDC shows. Yet eight in 10 entrepreneurs believe it’s important to measure and benchmark productivity.

Some might think it’s a lot of time and effort for little gain. Others may simply not know the ins and outs of a proper benchmarking exercise. But benchmarking is well worth the effort, because BDC’s research shows one in three companies that do formally measure their productivity expect to see 10 per cent or more annual growth for three years, the report noted.

This could explain why Canadian SMBs have been relatively less productive than their U.S. counterparts for some time now. Productivity at small and mid-sized businesses in Canada is 47 per cent of productivity at large businesses active in Canada. In the U.S., statistics show that figure is 67 per cent.

“The productivity gap between Canada and U.S. just keeps getting bigger,” said Pierre Cléroux, BDC’s chief economist. “One reason is that while we have skilled workers, businesses are not investing in technology as much as they should. For example, Canadian businesses invest 56 per cent of what U.S. companies do in information and communications technologies.”

Even those that do invest are not changing processes, and thus not maximizing the benefits of the technology, he added. “If you’re not efficient, you are leaving money on the table and are not as profitable as you could be. Measuring productivity and comparing your performance levels to those of your industry peers is critical for boosting efficiency and profitability.”

To kick off BDC Small Business Week 2016, the bank launched Canada’s first business productivity benchmarking tool. The easy-to-use, free online tool was designed to help small family-owned businesses to companies with +500 employees measure their productivity against a database of 60,000 Canadian companies at a click of a button.

Companies can benchmark their productivity against five key indicators: overall efficiency, revenue per employee, profit per employee, labour and capital.

Cléroux stressed that proper metrics allow businesses to pinpoint areas of weakness and work on improvement. “For a business, productivity improvements — whether through training, waste reduction, improved operations, new product development or ICT investment — mean more profits and greater competitiveness. For the economy it means a better standard of living for everyone.”

VC funding falls to two-year low

The funding boom seen in 2015 may be over, according to a new report from KPMG and CB Insights. Venture Pulse, a jointly-published quarterly global report on VC trends, shows that investors in VC-backed companies remain cautious in 2016, as major economies continue to face economic uncertainty and startup companies experience a difficult exit environment.

In the lowest quarter of deal funding since Q3 2014, Q3 2016 saw US$24.1 billion invested across 1,983 deals globally, a 14 per cent decline in total quarterly funding.

Funding trended downward across the major venture hubs of North America, Europe, and Asia. Total dollars in North America and Europe fell dramatically, with North America down 18 per cent from the quarter prior to US$14.4 billion, and Europe down 21 per cent to US$2.3 billion.

The number of deals was down in Asia and North America, and up in Europe. Europe also continued to see robust seed-stage activity, while seed deal shares dropped significantly in both North America and Asia. Seed rounds as a share of all global deals fell to 33 per cent.

CB Insights sees this trend as “a reset” following a period where funding levels were irrationally high. “That was not sustainable or healthy,” CEO Anand Sanwal, said in a statement.

KPMG expects to see more investments in the automotive, healthcare and fintech sectors later this year and into 2017. Cybersecurity also continues to attract attention from VC investors and is expected to remain a key focus of investment in the near term.

“Even as overall numbers trend down, corporations continue to access innovation and outsource R&D by investing in startups,” Sanwal said. “We also are continuing to see corporations invest across the funding spectrum not just in more mature later-stage companies but at the early stage, as well. If early stage activity stays weak in North America and Asia, it’s likely that corporate venture groups may pick up the slack.”

Time to get serious about credit card security

Accepting credit card payments may be a part of your daily operations that you don’t think a lot about. Yet businesses are required to follow set standards regardless of their size.

“You want to make sure there are no breaches, or at least minimize the extent of them,” says Leah White, partner, operational advisory for Grant Thornton in Halifax.

“Businesses can end up on the hook in a lot of different ways, especially if the credit card company finds out you aren’t complying with security standards. But a lot of smaller businesses don’t even know if those standards are in place.”

If an owner is found to be negligent, they could be facing more than the cost of the fraudulent charge. They may also have to shoulder the costs of a forensic investigation, card replacement and possible fines. “Not to mention the cost of fixing the problem, training and upgrading your IT,” White said.

There’s also the reputation risk to consider. Even after fixing a breach, you may have lost the trust of your customers, especially online customers. “That’s often the biggest ramification,” she said.

Rather than finding out after the fact you may be at fault for breach, White offers up some simple dos and don’ts to consider:

Don’t keep information you don’t need. “The first question to ask yourself is do you have a business reason to keep it?”

Don’t keep credit card numbers beyond an initial transaction.

Don’t deal with credit card information via email. “The general rule is if you wouldn’t write down information on a postcard, then don’t email it.”

Don’t leave credit card data lying around unsecured. “Numbers don’t always end up in the shredder. Often people don’t treat the information with the care and value it deserves.

Do ask your third-party providers and vendors if they are compliant with PCI DSS (Payment Card Industry Data Security Standards), including their equipment (e.g. payment terminals), applications and storage practices.

Do keep information only as long as you need it and then destroy it, and safely dispose of paper records with credit card numbers.

Do train your employees and establish policies about handling of credit card information.

Do make sure your technology is reasonably up to date and you understand where your data is at all times.

Do understand what information is being collected and how. “You may not realize how many ways you are getting information. Understanding the flows will help you manage risk better,” White said.

]]>http://business.financialpost.com/entrepreneur/small-business-digest/bdc-introduces-first-ever-online-business-productivity-benchmarking-tool/feed0pierredenisedeveaufpCyber security risks increase exponentially at $10-million milestone: surveyhttp://business.financialpost.com/entrepreneur/small-business-digest/cyber-security-risks-increase-exponentially-at-10-million-milestone-survey
http://business.financialpost.com/entrepreneur/small-business-digest/cyber-security-risks-increase-exponentially-at-10-million-milestone-survey#respondFri, 14 Oct 2016 12:00:18 +0000http://business.financialpost.com/?p=703197Reaching $10 million in revenue is something to cheer about but it may also be time to start looking at your security risks. While cyber security is a concern for any business today, the risk grows exponentially once a business reaches the $10-million milestone, recent data from Ipsos and ESET, an internet security provider, shows.

The data shows one in four Canadian small- to mid-sized businesses with annual revenue of $10 million or more have been victims of a cyber-attack, compared with one in 10 companies with lower revenue. The reason they are a target is that they have the same attractive assets as enterprise-level organizations but often have a lower level of protection and less sophisticated security solutions in place, said Iva Peric-Lightfoot, country manager for ESET Canada.

The data also shows that one in five Canadian SMBs who have been a victim of a cyber-attack have suffered a significant loss to their business because of their inability to service customers. Other findings include that the majority of Canadian SMBs would be unable to function for more than a few days without access to their data, with 65 per cent only able to function for a few hours or days, and 15 per cent saying they would have to cease functioning immediately.

Not protecting information can cost your business

Information security breaches are one of the most costly business risks for small to mid-sized businesss, a recent survey found. Yet, as the 2016 Shred-it Security Tracker Survey by Ipsos notes, 45 per cent of SMBs believe their business wouldn’t be affected by a data breach.

The Ponemon 2016 Cost of a Data Breach study revealed that the average cost per lost or stolen record is about $278, which can be devastating to a smaller business without the resources to absorb the financial losses.

We often think of data loss in terms of cyber risk. But there are also day-to-day practices in handling documents and devices that can be equally risky. Sometimes managing risk boils down to common sense practices.

Here are three data protection strategies Shred-it identified to help SMBs embed best practices throughout the workplace.

Implement a clean desk and a “shred-it-all” policy. Encourage employees to clear their desks and lock up documents before they leave at the end of the day or when they are away for an extended time. A shred-it-all policy requires that all paper documents be shredded and recycled.

Secure information on the move. More than half of Canadian SMBs have at least a portion of employees who work off-site, many of which use their own device, the 2016 Security Tracker survey found. Ensure the right information and security protocols are in place to protect customer and business data. Establish an off-site work policy that requests all mobile devices and laptops be encrypted. Also, remind employees about the risk of leaving hardware or materials in public places.

Dispose of media properly. Even if you erase, reformat, or wipe your hard drives, customer and company information may still be at risk. The best way to dispose of information from a device is to remove and safely destroy the hard drive.

International expansion plans

Canadian businesses love to talk about their domestic successes, but they’re not so forthcoming when it comes to international expansion, a recent survey by Leger for UPS Canada found. The Small Business Challenges results show only 43 per cent of smaller companies are doing business outside of Canada and the U.S.

That’s despite the fact 57 per cent of business owners feel they will benefit from a low Canadian dollar; and 75 per cent recognize that the Canadian Free Trade Agreement creates opportunities in foreign markets by reducing trade barriers.

“It’s encouraging to see Canadian SMBs are thriving domestically. However, it’s important for them to recognize that continued growth relies heavily on expansion, and international exports are key contributors to success,” said Paul Gaspar, director of small business, UPS Canada in a statement.

On the plus side, 25 per cent of executives from SMBs surveyed say they plan to expand internationally in the next five years: 61 per cent are hoping to do business in Europe; and another 42 per cent are looking to South and Central America.

Almost 95 per cent of those surveyed said a supply chain strategy will be key to assisting expansion into global markets. However, of the 39 per cent that do not have a supply chain strategy in place, almost half said their business isn’t large enough to have one; and 9 per cent were unsure of how to create one. Of the 52 per cent of respondents that have a supply chain strategy, 42 per cent said they partner with a third party.

In the response, Shimon Koffler Fogel, CEO of CIJA stated: “Known as the ‘Startup Nation,’ Israel is a model for any country looking to grow its economy through innovation, entrepreneurship, and higher education. … we encourage Canadian policymakers to look to Israel for best practices and bilateral innovation partnerships — both of which will be crucial in creating high-value Canadian jobs.”

He went on to say, “Israel’s track-record parallels the innovation priorities laid out for Canada by Minister Bains in June. Israel, for example, has achieved enormous success in integrating minorities into its innovation sector. In addition to the economic benefits, Israel has proven a model for how innovation can strengthen diversity and cultural understanding — a value shared by Canadians. This is just one example of how, by looking to Israel, our country’s entrepreneurs and innovators will ensure Canada is on the cutting edge of the new economy.”